What is KuCoin Exchange?
KuCoin Exchange is one of many cryptocurrency exchanges. The exchange launched in September 2017, so it is still pretty new at the time of this writing. They offer trading pairs against BTC, ETH, NEO, and USDT. This is pretty standard with the exception of NEO, which comes in handy if you are staking NEO and want to exchange your GAS for more NEO. Check out my post on how to stake NEO for GAS for more info on this passive income stream.
How is their liquidity?
Liquidity is one of the most crucial factors when choosing an exchange to trade on. Without liquidity you may have a lot of trouble buying/selling your cryptocurrency. KuCoin is doing an excellent job of bringing in volume for being a new exchange though. Their KCS token is helping attract new users, which I will go over in the next section. A few other things helping attract new users are their rapid listing of newer cryptocurrencies, referral bonuses, and trade fee discounts.
KuCoin has been adding new cryptocurrencies pretty rapidly, and was even the first exchange to trade the RedPulse token (RPX). This is a huge plus since a lot of big exchanges have come to a slow crawl for adding new cryptos. Luckily they aren’t adding every cryptocurrency in existence, otherwise it could get overwhelming. They have found a nice balance of adding quickly, but sticking with projects that have good potential. Follow them on Twitter (@kucoincom) to get the latest news on listings.
The discounts on trading fees are also helping to bring in volume. While trading fees are pretty low at most exchanges, they do still eat away at your funds. Hodlers will likely not care about this, but people that trade frequently might. Quite a few of the recent cryptocurrencies they have added have a special 1 month promotion of 0 trading fees. Some other newer ones have 1 month of 50% off the trading fees. The fee amount will be shown in the Buy and Sell boxes (screenshot below).
The first % in the fee field represents the discount based on how many KCS tokens you hold (1% off per 1k KCS). The second % is the current fee. In this example, RPX is still in the promotion period so the fee is showing 0%. The final % will be the actual fee for your trading of that pair, which again is 0 in this case.
The other promotion helping bring in volume is their referral program, or invitation bonus. Essentially you get a cut of the trading fees from anyone that uses your link to sign up. Please consider using my referral link if you find any of this is useful, I will be forever grateful! You can also read more about the invitation bonus here.
The KCS Token
This is my favorite part of the platform because it generates passive income. Currently, 50% of trading fees are shared daily with holders of the KCS token. Each day you receive some of each token that accumulated fees during the prior day. Imagine being able to buy a share of a stock exchange and then they dropped a portion of each stock traded that day into your portfolio! Please note that you have to have enough KCS to warrant a distribution. Also, if the token is in a 0% trade fee promotion (like RPX), you won’t receive any since it is not generating fees.
Per their website: “If the calculated amount is less than 0.00000001, the amount of Kucoin bonus will be ignored.”
Let me warn you that you will need a decent amount to generate anything meaningful right now. However, if they keep growing and the volume goes a lot higher, the payouts will also grow. It is important to note that they will be lowering the 50% sharing at some point in the future, but no lower than 15%. This will likely balance out growth of volume to an extent, but it is still a nice benefit. To give a visual, each day you will basically see a fraction of each cryptocurrency below (plus more, couldn’t fit all in the screenshot) deposited to your account:
The compounding here could be quite good because KCS is tradable here. This means your KCS gets you more KCS, and the more KCS you have the more your share of the ‘pot’ is. Another interesting point of compounding is that NEO generates gas, which KuCoin pays to its users (some exchanges don’t!). That means KCS -> NEO -> GAS. It’s kind of like a DRIP (Dividend Reinvestment Plan) on steroids. A nice calculator for figuring out current returns based on how many KCS you own can be found here.
Is the user interface pretty?
The user interface is far from pretty, it’s beautiful. Here is a screenshot of the NEO/BTC trading page:
If you have used Binance, this will look slightly familiar. They layout is clean and easy to navigate. There is an extra layer of protection here that I had not seen before, which is using 2 step verification to place a buy/sell order. Don’t worry though, you only do this once and then it is good for a couple of hours. In this world extra security is always a nice bonus.
All of the other parts of the website are also very well done and easy to navigate. I will let you discover those on your own though! I really appreciate when companies go the extra mile on their user interface because it really can be a make or break for getting new users to adopt your platform.
For being a new exchange, KuCoin is doing a great job of competing in the market. The user interface is great, bonuses are nice, and quickly adding of new cryptocurrencies is fantastic. I have not had to interact with their customer support yet, so no comments there. Although they have had a couple of issues they seem to resolve them quickly, so I will take that as a good sign. Since there are 1,000+ cryptocurrencies you will likely end up using multiple exchanges, but this is one you should strongly consider! Again, if you found this useful please consider using my referral link for KuCoin!